Last spring Magma's Thunder Bay North project (TBN) was named the Discovery of the Year at the Northwestern Ontario Mines and Mineral Symposium. I can understand why. It is the first and only Platinum deposit found outside of South Africa. South Africa produces 80% of the world Platinum. And who is the major Platinum producer in the world? Well it's Anglo American. Interesting is it not? The second Platinum producing country is Russia with 15%. But the Platinum produced in Russia is a by-product of Nickel and Copper. Magma's project is a Platinum/Paladium deposit with a ratio of 1/1. Meaning one ounce of Platinum for one ounce of Paladium. No such deposits with this kind of ratio exists outside of South Africa...
Now how much is Magma worth today.
Number of shares o/s: ~200.000,000 shares The price of the stock: ~0.50 a share Total market value: ~ $100,000,000
Proven Indicated Resources: ~700,000 oz of Pt equivalent. Price of ounces in the ground: $150.00 700,000 X $150.00 = ~ $100,000,000
So with the stock at 0.50 the market is bang on with its valuation of Magma today...
Regardless of this winter results, the 700,000 ounces in the ground will remain there. It will not go away...
I'll be back later this week with some more interesting observations.
Cheer up and enjoy your summer while we're freezing our buns off here in North America...
MMW Price at posting:
52.0¢ Sentiment: None Disclosure: Held
